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Empirical Regularities in Cross‐Country Alcohol Consumption

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  • S. SELVANATHAN
  • E.A. SELVANATHAN

Abstract

This paper analyses the demand for the three beverages: beer, wine and spirits, within alcohol, at a cross‐country level for 10 countries: Australia, Canada, Finland, France, Japan, New Zealand, Norway, Sweden, the UK and the US. A number of empirical regularities were found at the cross‐country level. This includes: (i) the demand theory hypotheses, homogeneity and symmetry are generally acceptable; (ii) the additive utility hypothesis is also acceptable even for such narrowly defined commodities; (iii) in nine out of the 10 countries, beer is considered as a necessity, in half of the countries wine is a necessity and in all the countries spirits are a luxury; and (iv)in all the countries, the demand for beer, wine and spirits are price inelastic.

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  • S. Selvanathan & E.A. Selvanathan, 2005. "Empirical Regularities in Cross‐Country Alcohol Consumption," The Economic Record, The Economic Society of Australia, vol. 81(s1), pages 128-142, August.
    • Handle: RePEc:bla:ecorec:v:81:y:2005:i:s1:p:s128-s142
    DOI: 10.1111/j.1475-4932.2005.00250.x
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    References listed on IDEAS

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    Cited by:

    1. Tomson Ogwang & Danny Cho, 2009. "Economic determinants of the consumption of alcoholic beverages in Canada: a panel data analysis," Empirical Economics, Springer, vol. 37(3), pages 599-613, December.
    2. Liesbeth Colen & Johan Swinnen, 2016. "Economic Growth, Globalisation and Beer Consumption," Journal of Agricultural Economics, Wiley Blackwell, vol. 67(1), pages 186-207, February.
    3. Benjamin Volland, 2013. "The History of an Inferior Good: Beer Consumption in Germany," Papers on Economics and Evolution 2012-19, Philipps University Marburg, Department of Geography.

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